He was very much afraid.

Because it was unknown, it was hostile to him.
Therefore the hair stood up on end along his back and his lips wrinkled weakly in an attempt at a ferocious and intimidating snarl.

Out of his puniness and fright he challenged and menaced the whole wide world.
Nothing happened.

He continued to gaze, and in his interest he forgot to snarl.

Also, he forgot to be afraid.